Using rent to pay another mortgage

Edi81

Stamp duty is payable with a number of days after the purchase. Typically it’s paid to the conveyancer at the point of completion. 

Emmia

mrbonds said:

BikingBud said:

mrbonds said:

kingstreet said:

If your only income is rent you will need two years' tax calculations and tax year overviews to be able to use the income in affordability for a residential mortgage.

A more efficient route would be to raise a let to buy mortgage on the current property and use that to purchase the residential but you will only be able to borrow the lower of 75% of the valuation; or the maximum based on affordability using the rental income.

Get broker help with this as it will be easy to make a mess of it.

As has been stated you will have second property stamp duty surcharge in England or the equivalent in Scotland/Wales.

Does the stamp duty get added to the amount of is it a one off fee upfront?

To which amount?

I feel you need to spend some time investigating all costs and all potential benefits before you commit to anything.

Added to the mortgage payments I mean 

Adding the fees to the mortgage means you pay the mortgage interest on them

BikingBud

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

mrbonds

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

Yorkie1

mrbonds said:

BikingBud said:

mrbonds said:

kingstreet said:

If your only income is rent you will need two years' tax calculations and tax year overviews to be able to use the income in affordability for a residential mortgage.

A more efficient route would be to raise a let to buy mortgage on the current property and use that to purchase the residential but you will only be able to borrow the lower of 75% of the valuation; or the maximum based on affordability using the rental income.

Get broker help with this as it will be easy to make a mess of it.

As has been stated you will have second property stamp duty surcharge in England or the equivalent in Scotland/Wales.

Does the stamp duty get added to the amount of is it a one off fee upfront?

To which amount?

I feel you need to spend some time investigating all costs and all potential benefits before you commit to anything.

Added to the mortgage payments I mean 

Stamp duty is a separate amount, paid up front to your solicitor so they can then pay it on your behalf.

Emmia

mrbonds said:

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

Why do you want a second house and all the obligations of being a landlord? Having an agent managing it all doesn't absolve you of your legal responsibilities if they don't get it right.

Edit: why don't you just enjoy being mortgage free?

BikingBud

mrbonds said:

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

I despair!

mrbonds

Emmia said:

mrbonds said:

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

Why do you want a second house and all the obligations of being a landlord? Having an agent managing it all doesn't absolve you of your legal responsibilities if they don't get it right.

Edit: why don't you just enjoy being mortgage free?

Garenteed income and thinking about the future.  

Also would like to move house since it's been 20 years 

Emmia

mrbonds said:

Emmia said:

mrbonds said:

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

Why do you want a second house and all the obligations of being a landlord? Having an agent managing it all doesn't absolve you of your legal responsibilities if they don't get it right.

Edit: why don't you just enjoy being mortgage free?

Garenteed income and thinking about the future.  

Also would like to move house since it's been 20 years 

You can move house, just sell the current one and move.

mrbonds

Emmia said:

mrbonds said:

Emmia said:

mrbonds said:

BikingBud said:

Please see and act upon my previous.

I am unsure who or what has stimulated you to go down this path but I really do have this sense of foreboding if you have little to no understanding about simple liabilities such as SDLT.

Just want to try and get a 2nd house since I don't have a mortgage on the current one 

Why do you want a second house and all the obligations of being a landlord? Having an agent managing it all doesn't absolve you of your legal responsibilities if they don't get it right.

Edit: why don't you just enjoy being mortgage free?

Garenteed income and thinking about the future.  

Also would like to move house since it's been 20 years 

You can move house, just sell the current one and move.

I'm not sure I want to move permanently. My house is good but id like to cash cow the rent out of a good location 🥴